AUD/USD hits 2-day highs above 0.6950 on dollar weakness

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  • The dollar falls on Friday as stocks soar.
  • Commodity prices also recover, US yields remain low.
  • AUD/USD rises modestly on the week and remains above recent lows.

The AUD/USD it broke above 0.6920 and jumped to 0.6957 on Friday, reaching the highest level in two days. Stocks rise sharply on Wall Street helping the Aussie.

Risk appetite at the end of a positive week

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Despite recession fears, investors rallied around stocks. US stock indices rise more than 2%, extending weekly gains. Negative economic data did not weigh on sentiment and kept US yields away from the recent peak, weakening the dollar.

AUD/USD rebounded from weekly lows below 0.6900, erasing weekly losses. Short-term prospects for the aussie improved. Above 0.6950 the next resistance is at 0.6990, the last defense at 0.7000. A decline below 0.6925 would expose the weekly low around 0.6870.

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Next week

In the US, the focus will continue to be on how the Federal Reserve assesses the current outlook between high inflation and recession fears. In terms of data, Thursday’s PCE report (with underlying PCE numbers) will be the most important, followed by Friday’s ISM Manufacturing.

Australia’s economic calendar shows retail sales figures for May, due for release on Wednesday. “Although consumer sentiment has tumbled due to rising inflation and lower confidence around the economic outlook, household balance sheets are in good shape. In addition, a strong labor market should keep spending on households. A strong pace of retail sales will bolster the case for another aggressive move by the Reserve Bank of Australia in July, following its overblown 50 basis point hike,” analysts at TD Securities said.

Technical levels

AUD/USD

Panorama
Last Price Today 0.6941
Today’s Daily Change 0.0041
Today’s Daily Change % 0.59
Today’s Daily Opening 0.69
Trends
20 Daily SMA 0.7074
50 Daily SMA 0.7099
100 Daily SMA 0.7214
200 Daily SMA 0.7234
levels
Previous Daily High 0.6928
Previous Daily Minimum 0.6868
Previous Maximum Weekly 0.707
Previous Weekly Minimum 0.685
Monthly Prior Maximum 0.7267
Previous Monthly Minimum 0.6828
Daily Fibonacci 38.2% 0.6891
Daily Fibonacci 61.8% 0.6905
Daily Pivot Point S1 0.6869
Daily Pivot Point S2 0.6839
Daily Pivot Point S3 0.6809
Daily Pivot Point R1 0.6929
Daily Pivot Point R2 0.6959
Daily Pivot Point R3 0.6989

Source: Fx Street

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